SlideShare a Scribd company logo
1 of 56
CONSUMER LEARNING
Prof. B. B. Mishra
OPENING VIGNETTE
 Why did these products fail?
 Listerine Toothpaste
 Ben-Gay Aspirin
 Oreo Little Fudgies
 Why did Pocket Paks succeed?
CONSUMER LEARNING
A process by which individuals acquire the
purchase and consumption knowledge and
experience that they apply to future related
behaviour.
 Learning refers to a relatively permanent change
in behavior that is caused by experience.
 Learning is an ongoing process and we can
learn:
 Vicariously by observing events that affect
others,
 By incidental learning which is unintentional.
LEARNING PROCESSES
Intentional
learning acquired as a result of a
careful search for information
 Incidental
-- learning acquired by accident or
without much effort
IMPORTANCE OF LEARNING
 Marketers must teach consumers:
 where to buy
 how to use
 how to maintain
 how to dispose of products
 There are several theories to explain
the learning process such as the
Behavioral Theory and the Cognitive
Theory.
LEARNING THEORIES
 Behavioural
Theories: Theories
based on the
premise that learning
takes place as the
result of observable
responses to
external stimuli. Also
known as stimulus
response theory.
 Cognitive Theories:
A theory of learning
based on mental
information
processing, often in
response to problem
solving.
ELEMENTS OF LEARNING THEORIES
 Motivation
 Cues
 Response
 Reinforcement
REINFORCEMENT
 A positive or negative outcome that
influences the likelihood that a specific
behaviour will be repeated in the future in
response to a particular cue or stimulus.
BEHAVIOURAL LEARNING THEORIES
 Classical Conditioning
 Instrumental Conditioning
 Modeling or Observational Learning
BEHAVIORAL LEARNING THEORIES
Stimulus
Consumer Response
Consumer’s Black Box
Behavioral Learning Theories Assume that Learning
Takes Place as the Result of Responses to External
Events.
BEHAVIORAL LEARNING THEORY:
CLASSICAL CONDITIONING
Classical Conditioning Occurs When a Stimulus That
Elicits a Response is Paired With Another Stimulus That
Initially Does Not Elicit a Response on It’s Own.
Unconditioned
Stimulus
(UCS)
Conditioned
Stimulus
(CS)
Conditioned
Response
(CR)
CLASSICAL CONDITIONING
 Pairing a stimulus with another stimulus that
elicits a known response to produce the
same response when used alone.
NOTE: UR and CR
represent the same
behavior, but causes
differ
CLASSICAL CONDITIONING
US ----> UR
(Unconditioned stimulus) (Unconditioned response)
US + CS -----> UR
(Conditioned stimulus)
CS ------> CR (CS alone is now
(Conditioned response) able to bring
E.g.: CR)
SUGAR -------> insulin release
SUGAR + Cola Taste -------> insulin release
Cola taste -------> insulin release
FACTORS THAT AFFECT THE
CLASSICAL CONDITIONING PROCESS
Stimulus
Generalization
“Piggybacking”
Stimulus
Discrimination
Repetition
MARKETING APPLICATIONS OF
BEHAVIORAL LEARNING PRINCIPLES
 Behavioral Learning
 Brand Equity
 Repetition
 Advertising Wear-Out
 Conditioned Product Association
 Stimulus Generalization
 Family Branding
 Product Line Extension
 Licensing
 Look-Alike Packaging
 Stimulus Discrimination
CLASSICAL CONDITIONING – CONT’D
 Classical conditioning is the learning of
associations among events that allows us to
anticipate and represent our environment.
 From this viewpoint, classical conditioning is
not reflexive action, but rather the acquisition
of new knowledge
NEO-PAVLOVIAN CONDITIONING
 Forward Conditioning (CS Precedes US)
 Repeated Pairings of CS and US
 A CS and US that Logically Belong to Each
Other
 A CS that is Novel and Unfamiliar
 A US that is Biologically or Symbolically
Salient
STRATEGIC APPLICATIONS OF CLASSICAL
CONDITIONING
 Repetition
 Stimulus Generalization
 The inability to perceive differences between slightly
dissimilar stimuli.
 Stimulus Discrimination
REPETITION
Repetition increases strength of
associations and slows forgetting
but over time may result in
advertising wearout.
Cosmetic variations reduce
satiation.
THREE-HIT THEORY
 Repetition is the basis for the idea that three
exposures to an ad are necessary for the ad
to be effective
 The number of actual repetitions to equal
three exposures is in question.
STIMULUS GENERALIZATION
 The inability to perceive differences between
slightly dissimilar stimuli.
 Marketing applications
 Product Line, Form and Category Extensions
 Family Branding
 Licensing
 Generalizing Usage Situations
STIMULUS DISCRIMINATION
 The ability to select a specific stimulus from
among similar stimuli because of perceived
differences.
CLASSICAL CONDITIONING AND
MARKETING STRATEGY
 Identify and pair product with a known,
well-liked stimulus
 More attention
 More favourable attitudes
 Greater intention to buy the product
 Learning of key attributes
 Use stimulus generalization effectively
 Distinguish the product through effective
use of stimulus discrimination
INSTRUMENTAL CONDITIONING
 Consumers learn by means of trial and
error process in which some purchase
behaviours result in more favorable
outcomes (rewards) than other purchase
behaviours.
 A favorable experience is instrumental in
teaching the individual to repeat a specific
behaviour.
 learning based on a trial-and-error
process, with habits forced as the result of
positive experiences (reinforcement)
INSTRUMENTAL (OPERANT) CONDITIONING
BEHAVIOR
REINFORCEMENT
NEGATIVE
REINFORCEMENT
PUNISHMENT
LIKELIHOOD
OF BEHAVIOR
LIKELIHOOD
OF BEHAVIOR
{
NOT the
same thing!
REINFORCEMENT EFFECTIVENESS
 Temporal proximity--conditioning is more
effective if consequences immediately follow
behavior (delayed reinforcement is much
less effective)
 Recognition of relationship between
behavior and consequences
 Schedules of reinforcement--variable ratio
is most effective
STRENGTH OF LEARNING
 Importance
 Involvement
 Product
 Message—e.g.,
 AFLAC Insurance
 Energizer Bunny
 Mood
 Mixed research results
 More elaboration and
associations during positive
mood if the association is
pleasurable
 Happy people may seek to
avoid thinking to avoid
spoiling the good mood
 Individuals will tend to be
more critical of claims under
bad mood
BEHAVIORAL LEARNING THEORY:
INSTRUMENTAL CONDITIONING
Instrumental Conditioning (Operant Conditioning)
Occurs as the Individual Learns to Perform
Behaviors That Produce Positive Outcomes and to
Avoid Those That Yield Negative Outcomes.
It Occurs in One of the Following Ways:
Punishment
Positive Reinforcement
Negative Reinforcement
Extinction
INSTRUMENTAL LEARNING
 Reinforcement Schedules
 Fixed - Interval
 Variable - Interval
 Fixed - Ratio
 Variable - Ratio
 Applications of Instrumental
Conditioning
 Reinforcement of Consumption
 Frequency Marketing - reinforces regular
purchasers by giving them prizes with values that
increase along with the amount purchased.
REINFORCEMENT
 Positive
Reinforcement:
Positive outcomes
that strengthen the
likelihood of a
specific response
 Example: Ad showing
beautiful hair as a
reinforcement to buy
shampoo
 Negative
Reinforcement:
Unpleasant or negative
outcomes that serve to
encourage a specific
behaviour
 Example: Ad showing
wrinkled skin as
reinforcement to buy
skin cream
OTHER CONCEPTS IN REINFORCEMENT
 Punishment
 Choose reinforcement rather than
punishment
 Extinction
 Combat with consumer satisfaction
 Forgetting
 Combat with repetition
INSTRUMENTAL CONDITIONING AND
MARKETING
 Make the product the ultimate reward
 Provide samples and free trials
 Provide non-product rewards
 Practice relationship marketing
 Reinforcement Schedules
 Shaping
 Massed versus Distributed Learning
DEVELOPING BRAND LOYALTY: TRICKS
AND TRAPS
 Product quality --->
satisfaction
 Sales promotions
 Stealing loyal consumers
away from others--is it worth
it?
 Price
 value
 exclusiveness
COGNITIVE LEARNING THEORY
 Learning through problem solving,
which enables individuals to gain some
control over their environment.
 Three types:
 Observational learning
 Rote Learning
 Reasoning
COGNITIVE LEARNING THEORY:
OBSERVATIONAL LEARNING
Consumer’s Attention Must Be Drawn to a Desirable Model
Consumer Must Remember What is Said and Done by Model
Consumer Must Convert This Information Into Actions
Consumer Must be Motivated to Perform These Actions
Is Learning Conscious Or Not?
Observational Learning Occurs When People Watch the
Actions of Others and Note the Reinforcements They Receive
From Others.
Imitating the Behavior of Others is Called Modeling:
THE ROLE OF MEMORY IN LEARNING
 Encoding Information for Later Retrieval
 Types of Meaning
 Personal Relevance
 Flashbulb Memories
 Narrative
 Memory Systems
 Sensory Memory
 Short-Term Memory (STM)
 Long-Term Memory (LTM)
RELATIONSHIPS AMONG MEMORY SYSTEMS
THE ROLE OF MEMORY IN LEARNING
 Storing Information in Memory
 Activation Models of Memory
 Associative Networks
 Knowledge Structures
AN ASSOCIATIVE NETWORK FOR PERFUMES
THE ROLE OF MEMORY IN LEARNING
 Spreading Activation
 Memory Trace for an Ad Could Be Stored
in One or More of the Following Ways:
 Brand-specific
 Ad-specific
 Brand Identification
 Product Category
 Evaluative Reactions
 Levels of Knowledge
THE ROLE OF MEMORY IN LEARNING
 Retrieving Information for Purchase
Decisions
 Factors Influencing Retrieval
 State-Dependent Retrieval
 Familiarity and Recall
 Salience and Recall
 Von Restorff Effect
 Pictorial Versus Verbal Cues: Is a Picture
Worth a Thousand Words?
THE ROLE OF MEMORY IN LEARNING
 Factors Influencing Forgetting
 Decay
 Part-List Cueing Effect
 Products as Memory Markers
 Autobiographical Memories
 The Marketing Power of Nostalgia
 Nostalgia
 Spontaneous Recovery
 Memory and Aesthetic Preferences
 Measuring Memory for Marketing Stimuli
 Recognition Versus Recall
 The Starch Test
THE ROLE OF MEMORY IN LEARNING
 Problems with Memory Measures
 Response Biases
 Memory Lapses
 Memory for Facts Versus Feelings
OBSERVATIONAL LEARNING
 individuals learn by observing the behaviour
of others, and consequences of such
behaviour.
 Also known as modeling or vicarious
learning.
ICONIC ROTE LEARNING
 Learning concepts through simple repetition
 Repeated ads teach consumers about a product’s
attributes
REASONING
 Highest level of cognitive learning
 Involves creative thinking
 Depends on how information is processed
and stored
RETENTION
 Information is stored in
long-term memory
 Episodically: by the
order in which it is
acquired
 Semantically: according
to significant concepts
INFORMATION PROCESSING AND
INVOLVEMENT THEORY
 Central and Peripheral Routes to
Persuasion
 highly involved consumers are best reached through
ads that focus on the specific attributes of the product
(the central route)
 uninvolved consumers can be attracted through
peripheral advertising cues such as the model or the
setting (the peripheral route).
ELABORATION LIKELIHOOD MODEL (ELM)
 a person’s level of involvement during
message processing determines which route
to persuasion is likely to be effective
THE ELABORATION LIKELIHOOD MODEL
Involvement
Central
Route
Peripheral
Route
Message
Arguments
Influence
Attitudes
Peripheral
Cues
Influence
Attitudes
HIGH
LOW
COGNITIVE LEARNING AND MARKETING
STRATEGY
 Use rote learning to teach consumers
about the brand
 Use reasoning or problem solving for
complex or high-involvement products
 Use modelling to extinguish negative
behaviour
 Use knowledge of information
processing to help consumers store,
retain and retrieve messages.
MEASURES OF CONSUMER LEARNING
 Recognition and Recall Measures
 Aided and Unaided Recall
 Cognitive Responses to Advertising
 Copy-testing Measures
 Attitudinal and Behavioural Measures of
Brand Loyalty

More Related Content

Similar to Consumer-Learning.ppthhjjjjjjjjjjjjjjjkkkiiii

Similar to Consumer-Learning.ppthhjjjjjjjjjjjjjjjkkkiiii (20)

Learning Edited
Learning EditedLearning Edited
Learning Edited
 
Consumer learning
Consumer learningConsumer learning
Consumer learning
 
Mbag Learning 27.8.09
Mbag Learning 27.8.09Mbag Learning 27.8.09
Mbag Learning 27.8.09
 
consumer behaviour learning
 consumer behaviour learning  consumer behaviour learning
consumer behaviour learning
 
Consumer learning
Consumer learningConsumer learning
Consumer learning
 
Consumer Behaviour
Consumer Behaviour   Consumer Behaviour
Consumer Behaviour
 
Learning - Consumer Behavior
Learning - Consumer BehaviorLearning - Consumer Behavior
Learning - Consumer Behavior
 
Consumer Learning
Consumer LearningConsumer Learning
Consumer Learning
 
Consumer Learning
Consumer LearningConsumer Learning
Consumer Learning
 
Consumer Behavior- Perception and Learning
Consumer Behavior- Perception and LearningConsumer Behavior- Perception and Learning
Consumer Behavior- Perception and Learning
 
Consumer learning
Consumer learningConsumer learning
Consumer learning
 
Learning memory and product positioning
Learning memory and product positioningLearning memory and product positioning
Learning memory and product positioning
 
Consumer learning
Consumer learningConsumer learning
Consumer learning
 
Consumer Behaviour ads on internal influences
Consumer Behaviour ads on internal influencesConsumer Behaviour ads on internal influences
Consumer Behaviour ads on internal influences
 
Ch 5 Motivation
Ch 5 MotivationCh 5 Motivation
Ch 5 Motivation
 
Ch 5 Motivation
Ch 5 MotivationCh 5 Motivation
Ch 5 Motivation
 
Schiff cb ce_06
Schiff cb ce_06Schiff cb ce_06
Schiff cb ce_06
 
Consumer Motivation
Consumer MotivationConsumer Motivation
Consumer Motivation
 
Attitudes
AttitudesAttitudes
Attitudes
 
Consumer Behavior (Learning)
Consumer Behavior (Learning)Consumer Behavior (Learning)
Consumer Behavior (Learning)
 

Recently uploaded

Biting mechanism of poisonous snakes.pdf
Biting mechanism of poisonous snakes.pdfBiting mechanism of poisonous snakes.pdf
Biting mechanism of poisonous snakes.pdfadityarao40181
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)eniolaolutunde
 
Interactive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationInteractive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationnomboosow
 
internship ppt on smartinternz platform as salesforce developer
internship ppt on smartinternz platform as salesforce developerinternship ppt on smartinternz platform as salesforce developer
internship ppt on smartinternz platform as salesforce developerunnathinaik
 
Historical philosophical, theoretical, and legal foundations of special and i...
Historical philosophical, theoretical, and legal foundations of special and i...Historical philosophical, theoretical, and legal foundations of special and i...
Historical philosophical, theoretical, and legal foundations of special and i...jaredbarbolino94
 
Presiding Officer Training module 2024 lok sabha elections
Presiding Officer Training module 2024 lok sabha electionsPresiding Officer Training module 2024 lok sabha elections
Presiding Officer Training module 2024 lok sabha electionsanshu789521
 
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdfEnzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdfSumit Tiwari
 
Meghan Sutherland In Media Res Media Component
Meghan Sutherland In Media Res Media ComponentMeghan Sutherland In Media Res Media Component
Meghan Sutherland In Media Res Media ComponentInMediaRes1
 
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxiammrhaywood
 
Pharmacognosy Flower 3. Compositae 2023.pdf
Pharmacognosy Flower 3. Compositae 2023.pdfPharmacognosy Flower 3. Compositae 2023.pdf
Pharmacognosy Flower 3. Compositae 2023.pdfMahmoud M. Sallam
 
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptx
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptxPOINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptx
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptxSayali Powar
 
Painted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of IndiaPainted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of IndiaVirag Sontakke
 
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...Marc Dusseiller Dusjagr
 
Earth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatEarth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatYousafMalik24
 
Solving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxSolving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxOH TEIK BIN
 
Computed Fields and api Depends in the Odoo 17
Computed Fields and api Depends in the Odoo 17Computed Fields and api Depends in the Odoo 17
Computed Fields and api Depends in the Odoo 17Celine George
 
Employee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptxEmployee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptxNirmalaLoungPoorunde1
 
EPANDING THE CONTENT OF AN OUTLINE using notes.pptx
EPANDING THE CONTENT OF AN OUTLINE using notes.pptxEPANDING THE CONTENT OF AN OUTLINE using notes.pptx
EPANDING THE CONTENT OF AN OUTLINE using notes.pptxRaymartEstabillo3
 
Final demo Grade 9 for demo Plan dessert.pptx
Final demo Grade 9 for demo Plan dessert.pptxFinal demo Grade 9 for demo Plan dessert.pptx
Final demo Grade 9 for demo Plan dessert.pptxAvyJaneVismanos
 

Recently uploaded (20)

Biting mechanism of poisonous snakes.pdf
Biting mechanism of poisonous snakes.pdfBiting mechanism of poisonous snakes.pdf
Biting mechanism of poisonous snakes.pdf
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)
 
Interactive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationInteractive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communication
 
internship ppt on smartinternz platform as salesforce developer
internship ppt on smartinternz platform as salesforce developerinternship ppt on smartinternz platform as salesforce developer
internship ppt on smartinternz platform as salesforce developer
 
Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝
 
Historical philosophical, theoretical, and legal foundations of special and i...
Historical philosophical, theoretical, and legal foundations of special and i...Historical philosophical, theoretical, and legal foundations of special and i...
Historical philosophical, theoretical, and legal foundations of special and i...
 
Presiding Officer Training module 2024 lok sabha elections
Presiding Officer Training module 2024 lok sabha electionsPresiding Officer Training module 2024 lok sabha elections
Presiding Officer Training module 2024 lok sabha elections
 
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdfEnzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
 
Meghan Sutherland In Media Res Media Component
Meghan Sutherland In Media Res Media ComponentMeghan Sutherland In Media Res Media Component
Meghan Sutherland In Media Res Media Component
 
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
 
Pharmacognosy Flower 3. Compositae 2023.pdf
Pharmacognosy Flower 3. Compositae 2023.pdfPharmacognosy Flower 3. Compositae 2023.pdf
Pharmacognosy Flower 3. Compositae 2023.pdf
 
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptx
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptxPOINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptx
POINT- BIOCHEMISTRY SEM 2 ENZYMES UNIT 5.pptx
 
Painted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of IndiaPainted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of India
 
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
 
Earth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatEarth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice great
 
Solving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxSolving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptx
 
Computed Fields and api Depends in the Odoo 17
Computed Fields and api Depends in the Odoo 17Computed Fields and api Depends in the Odoo 17
Computed Fields and api Depends in the Odoo 17
 
Employee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptxEmployee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptx
 
EPANDING THE CONTENT OF AN OUTLINE using notes.pptx
EPANDING THE CONTENT OF AN OUTLINE using notes.pptxEPANDING THE CONTENT OF AN OUTLINE using notes.pptx
EPANDING THE CONTENT OF AN OUTLINE using notes.pptx
 
Final demo Grade 9 for demo Plan dessert.pptx
Final demo Grade 9 for demo Plan dessert.pptxFinal demo Grade 9 for demo Plan dessert.pptx
Final demo Grade 9 for demo Plan dessert.pptx
 

Consumer-Learning.ppthhjjjjjjjjjjjjjjjkkkiiii

  • 2. OPENING VIGNETTE  Why did these products fail?  Listerine Toothpaste  Ben-Gay Aspirin  Oreo Little Fudgies  Why did Pocket Paks succeed?
  • 3. CONSUMER LEARNING A process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour.  Learning refers to a relatively permanent change in behavior that is caused by experience.  Learning is an ongoing process and we can learn:  Vicariously by observing events that affect others,  By incidental learning which is unintentional.
  • 4. LEARNING PROCESSES Intentional learning acquired as a result of a careful search for information  Incidental -- learning acquired by accident or without much effort
  • 5. IMPORTANCE OF LEARNING  Marketers must teach consumers:  where to buy  how to use  how to maintain  how to dispose of products  There are several theories to explain the learning process such as the Behavioral Theory and the Cognitive Theory.
  • 6. LEARNING THEORIES  Behavioural Theories: Theories based on the premise that learning takes place as the result of observable responses to external stimuli. Also known as stimulus response theory.  Cognitive Theories: A theory of learning based on mental information processing, often in response to problem solving.
  • 7. ELEMENTS OF LEARNING THEORIES  Motivation  Cues  Response  Reinforcement
  • 8. REINFORCEMENT  A positive or negative outcome that influences the likelihood that a specific behaviour will be repeated in the future in response to a particular cue or stimulus.
  • 9. BEHAVIOURAL LEARNING THEORIES  Classical Conditioning  Instrumental Conditioning  Modeling or Observational Learning
  • 10. BEHAVIORAL LEARNING THEORIES Stimulus Consumer Response Consumer’s Black Box Behavioral Learning Theories Assume that Learning Takes Place as the Result of Responses to External Events.
  • 11. BEHAVIORAL LEARNING THEORY: CLASSICAL CONDITIONING Classical Conditioning Occurs When a Stimulus That Elicits a Response is Paired With Another Stimulus That Initially Does Not Elicit a Response on It’s Own. Unconditioned Stimulus (UCS) Conditioned Stimulus (CS) Conditioned Response (CR)
  • 12. CLASSICAL CONDITIONING  Pairing a stimulus with another stimulus that elicits a known response to produce the same response when used alone.
  • 13. NOTE: UR and CR represent the same behavior, but causes differ CLASSICAL CONDITIONING US ----> UR (Unconditioned stimulus) (Unconditioned response) US + CS -----> UR (Conditioned stimulus) CS ------> CR (CS alone is now (Conditioned response) able to bring E.g.: CR) SUGAR -------> insulin release SUGAR + Cola Taste -------> insulin release Cola taste -------> insulin release
  • 14. FACTORS THAT AFFECT THE CLASSICAL CONDITIONING PROCESS Stimulus Generalization “Piggybacking” Stimulus Discrimination Repetition
  • 15. MARKETING APPLICATIONS OF BEHAVIORAL LEARNING PRINCIPLES  Behavioral Learning  Brand Equity  Repetition  Advertising Wear-Out  Conditioned Product Association  Stimulus Generalization  Family Branding  Product Line Extension  Licensing  Look-Alike Packaging  Stimulus Discrimination
  • 16.
  • 17.
  • 18. CLASSICAL CONDITIONING – CONT’D  Classical conditioning is the learning of associations among events that allows us to anticipate and represent our environment.  From this viewpoint, classical conditioning is not reflexive action, but rather the acquisition of new knowledge
  • 19. NEO-PAVLOVIAN CONDITIONING  Forward Conditioning (CS Precedes US)  Repeated Pairings of CS and US  A CS and US that Logically Belong to Each Other  A CS that is Novel and Unfamiliar  A US that is Biologically or Symbolically Salient
  • 20. STRATEGIC APPLICATIONS OF CLASSICAL CONDITIONING  Repetition  Stimulus Generalization  The inability to perceive differences between slightly dissimilar stimuli.  Stimulus Discrimination
  • 21. REPETITION Repetition increases strength of associations and slows forgetting but over time may result in advertising wearout. Cosmetic variations reduce satiation.
  • 22. THREE-HIT THEORY  Repetition is the basis for the idea that three exposures to an ad are necessary for the ad to be effective  The number of actual repetitions to equal three exposures is in question.
  • 23. STIMULUS GENERALIZATION  The inability to perceive differences between slightly dissimilar stimuli.  Marketing applications  Product Line, Form and Category Extensions  Family Branding  Licensing  Generalizing Usage Situations
  • 24. STIMULUS DISCRIMINATION  The ability to select a specific stimulus from among similar stimuli because of perceived differences.
  • 25. CLASSICAL CONDITIONING AND MARKETING STRATEGY  Identify and pair product with a known, well-liked stimulus  More attention  More favourable attitudes  Greater intention to buy the product  Learning of key attributes  Use stimulus generalization effectively  Distinguish the product through effective use of stimulus discrimination
  • 26. INSTRUMENTAL CONDITIONING  Consumers learn by means of trial and error process in which some purchase behaviours result in more favorable outcomes (rewards) than other purchase behaviours.  A favorable experience is instrumental in teaching the individual to repeat a specific behaviour.  learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement)
  • 27.
  • 29. REINFORCEMENT EFFECTIVENESS  Temporal proximity--conditioning is more effective if consequences immediately follow behavior (delayed reinforcement is much less effective)  Recognition of relationship between behavior and consequences  Schedules of reinforcement--variable ratio is most effective
  • 30. STRENGTH OF LEARNING  Importance  Involvement  Product  Message—e.g.,  AFLAC Insurance  Energizer Bunny  Mood  Mixed research results  More elaboration and associations during positive mood if the association is pleasurable  Happy people may seek to avoid thinking to avoid spoiling the good mood  Individuals will tend to be more critical of claims under bad mood
  • 31. BEHAVIORAL LEARNING THEORY: INSTRUMENTAL CONDITIONING Instrumental Conditioning (Operant Conditioning) Occurs as the Individual Learns to Perform Behaviors That Produce Positive Outcomes and to Avoid Those That Yield Negative Outcomes. It Occurs in One of the Following Ways: Punishment Positive Reinforcement Negative Reinforcement Extinction
  • 32. INSTRUMENTAL LEARNING  Reinforcement Schedules  Fixed - Interval  Variable - Interval  Fixed - Ratio  Variable - Ratio  Applications of Instrumental Conditioning  Reinforcement of Consumption  Frequency Marketing - reinforces regular purchasers by giving them prizes with values that increase along with the amount purchased.
  • 33. REINFORCEMENT  Positive Reinforcement: Positive outcomes that strengthen the likelihood of a specific response  Example: Ad showing beautiful hair as a reinforcement to buy shampoo  Negative Reinforcement: Unpleasant or negative outcomes that serve to encourage a specific behaviour  Example: Ad showing wrinkled skin as reinforcement to buy skin cream
  • 34. OTHER CONCEPTS IN REINFORCEMENT  Punishment  Choose reinforcement rather than punishment  Extinction  Combat with consumer satisfaction  Forgetting  Combat with repetition
  • 35. INSTRUMENTAL CONDITIONING AND MARKETING  Make the product the ultimate reward  Provide samples and free trials  Provide non-product rewards  Practice relationship marketing  Reinforcement Schedules  Shaping  Massed versus Distributed Learning
  • 36. DEVELOPING BRAND LOYALTY: TRICKS AND TRAPS  Product quality ---> satisfaction  Sales promotions  Stealing loyal consumers away from others--is it worth it?  Price  value  exclusiveness
  • 37. COGNITIVE LEARNING THEORY  Learning through problem solving, which enables individuals to gain some control over their environment.  Three types:  Observational learning  Rote Learning  Reasoning
  • 38. COGNITIVE LEARNING THEORY: OBSERVATIONAL LEARNING Consumer’s Attention Must Be Drawn to a Desirable Model Consumer Must Remember What is Said and Done by Model Consumer Must Convert This Information Into Actions Consumer Must be Motivated to Perform These Actions Is Learning Conscious Or Not? Observational Learning Occurs When People Watch the Actions of Others and Note the Reinforcements They Receive From Others. Imitating the Behavior of Others is Called Modeling:
  • 39. THE ROLE OF MEMORY IN LEARNING  Encoding Information for Later Retrieval  Types of Meaning  Personal Relevance  Flashbulb Memories  Narrative  Memory Systems  Sensory Memory  Short-Term Memory (STM)  Long-Term Memory (LTM)
  • 41. THE ROLE OF MEMORY IN LEARNING  Storing Information in Memory  Activation Models of Memory  Associative Networks  Knowledge Structures
  • 42. AN ASSOCIATIVE NETWORK FOR PERFUMES
  • 43. THE ROLE OF MEMORY IN LEARNING  Spreading Activation  Memory Trace for an Ad Could Be Stored in One or More of the Following Ways:  Brand-specific  Ad-specific  Brand Identification  Product Category  Evaluative Reactions  Levels of Knowledge
  • 44. THE ROLE OF MEMORY IN LEARNING  Retrieving Information for Purchase Decisions  Factors Influencing Retrieval  State-Dependent Retrieval  Familiarity and Recall  Salience and Recall  Von Restorff Effect  Pictorial Versus Verbal Cues: Is a Picture Worth a Thousand Words?
  • 45. THE ROLE OF MEMORY IN LEARNING  Factors Influencing Forgetting  Decay  Part-List Cueing Effect  Products as Memory Markers  Autobiographical Memories  The Marketing Power of Nostalgia  Nostalgia  Spontaneous Recovery  Memory and Aesthetic Preferences  Measuring Memory for Marketing Stimuli  Recognition Versus Recall  The Starch Test
  • 46. THE ROLE OF MEMORY IN LEARNING  Problems with Memory Measures  Response Biases  Memory Lapses  Memory for Facts Versus Feelings
  • 47. OBSERVATIONAL LEARNING  individuals learn by observing the behaviour of others, and consequences of such behaviour.  Also known as modeling or vicarious learning.
  • 48. ICONIC ROTE LEARNING  Learning concepts through simple repetition  Repeated ads teach consumers about a product’s attributes
  • 49. REASONING  Highest level of cognitive learning  Involves creative thinking  Depends on how information is processed and stored
  • 50.
  • 51. RETENTION  Information is stored in long-term memory  Episodically: by the order in which it is acquired  Semantically: according to significant concepts
  • 52. INFORMATION PROCESSING AND INVOLVEMENT THEORY  Central and Peripheral Routes to Persuasion  highly involved consumers are best reached through ads that focus on the specific attributes of the product (the central route)  uninvolved consumers can be attracted through peripheral advertising cues such as the model or the setting (the peripheral route).
  • 53. ELABORATION LIKELIHOOD MODEL (ELM)  a person’s level of involvement during message processing determines which route to persuasion is likely to be effective
  • 54. THE ELABORATION LIKELIHOOD MODEL Involvement Central Route Peripheral Route Message Arguments Influence Attitudes Peripheral Cues Influence Attitudes HIGH LOW
  • 55. COGNITIVE LEARNING AND MARKETING STRATEGY  Use rote learning to teach consumers about the brand  Use reasoning or problem solving for complex or high-involvement products  Use modelling to extinguish negative behaviour  Use knowledge of information processing to help consumers store, retain and retrieve messages.
  • 56. MEASURES OF CONSUMER LEARNING  Recognition and Recall Measures  Aided and Unaided Recall  Cognitive Responses to Advertising  Copy-testing Measures  Attitudinal and Behavioural Measures of Brand Loyalty